Advice in below case

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2013 Sir
I am doing a business of building restoration in chennai. Now i got a big order for about one crore. I have only Tin no. Now some people say i have to pay the service tax on the new order and also to take the service tax number. The vat @14.5% should be paid on 70% of the total billing and the Service tax of 12.36% should be paid in remaining 30%. Since i have started the business now can i avail the 10L exemption. pls suggest me clearly to that i can act as u suggest.

Tks

Rajnish Singh

Rajnish Singh (Expert)
Follow

11 February 2013 DEAR SIR,

YOU SHOULD PAY SERVICE TAX , BECAUSE YOUR TURNOVER WILL BE GOING MORE THAN 10 LAC AFTER THIS TRANSCTION.

WELL TILL THE REACHING OF 9 LAC YOU CAN TAKE EXEMPTION. BUT AS WELL AS YOU REACH ON MORE THAN 9 LAC YOU SHOULD TAKE THE REGISTRATION UNDER SERVICE TAX ACT.

YOU ARE THE SERVICE PROVIDER OF WCT.
YOU HAVE MANY OPTION TO DISCHARGE YOUR SERVICE TAX LIABILITY . YOU CAN CHOOSE EITHER ABATEMENT SCHEME , COMPOSITION SCHEME.

ABATEMENT SCHEME : - UNDER THIS SHCEMEN YOU SHOULD PAY @12.36% ON 33% .

AND YOU ARE NOT ELIGIBLE TO TAKE CAREDIT OF ANY INPUT.

COMPOSITION SCHEME : - UNDER THIS YOU SHOULD PAY AREOUND 4.67% ON GROSS BILLING AND NO NEED TO TAKE INPUT CREDIT.

THANKS

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now